Weekend comment from People's Bank of China Governor Yi Gang
- China's total debt-to-GDP ratio, remains at a stable level ... which help create an environment less likely to spawn financial risks
- monetary policy is within the normal range
- PBOC has ample tools to moderate interest rate
What this all means is that the PBOC still has room to provide liquidity to the economy, leverage levels are not too high. These are significant comments from the Governor, we've had plenty of China players talking up the need for restraint, or even winding back policy accommodation, but the Gov. here indicating easy policy will remain for a while yet.
Two peas in a pod